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Daniel Adaji
Nigerian states have collectively slashed their domestic debt stock by over N1.37trn in two years, according to latest data from the Debt Management Office (DMO), analysed by Pointblanknews.com on Saturday.
The figures show that total domestic debt owed by the 36 states including the Federal Capital Territory (FCT) dropped from N5.34trn in 2022 to N3.97trn as of 2024.
Lagos and Rivers emerged as the states with the highest domestic debt in 2024, posting N900.19bn and N364.39bn respectively. Both saw increases from their 2022 levels which saw Lagos rising from N807.2bn while Rivers surged from N225.5bn.
Meanwhile other states saw reduction in their debt profiles. Delta reduced its domestic debt from N304.25bn to N199.58bn. Ogun dropped from N270.45bn to N211.86bn, while Cross River brought its debt down from N197.21bn to N118.13bn.
Jigawa now holds the lowest domestic debt in the country, falling from N43.95bn in 2022 to just N1.33bn in 2024. Ondo (N12.88bn), Kebbi (N15.22bn), Ebonyi (N18.11bn), and Katsina (N25.68bn) round out the five least-indebted states.
States that made the most dramatic reductions include Anambra, which cut its debt from N77.49bn to N28.68bn; Kogi, from N93.62bn to N41.59bn; Ekiti, from N117.15bn to N53.53bn; and Kaduna, from N83.2bn to N25.76bn.
Niger’s domestic debt climbed from N95.59bn in 2022 to N140.74bn in 2024. Rivers recorded the highest increase in nominal terms, adding nearly N139bn.
On the external front, Lagos also led with $1.24bn in foreign borrowings, followed by Kaduna ($587m) and Edo ($314m). Jigawa and Yobe held the smallest external debts at $25.8m and $21.5m respectively.
The overall decline in state debt suggests a growing emphasis on financial discipline, even as some states continue to borrow to fund large-scale projects.